In part 1 of our three part interview with Rexel USA’s Senior Vice-President and Chief Strategy Officer Jordan Lomheim, we discussed the mergers and acquisition market in the past and future.
In part 2, tED magazine talked with Lomheim about Rexel USA’s overall strategy heading into 2026.
And now in part 3, we get insights from Lomheim on a key area in our supply chain: data centers and AI.
tED magazine: Rexel’s expansion into areas like data centers and telecom has been talked about significantly. How important are these high-growth verticals to the company’s future strategy?
Jordan Lomheim: I look at this in two parts. First, Talley gave us an industry-leading platform in telecom. It created a strong foundation that allowed us to expand with Connectronics and more recently launch Talley’s new Outside Plant division. This is just the beginning. Our ambition is to grow Talley into a billion-dollar platform through both organic and inorganic growth.
Second, data centers represent another massive opportunity for Rexel. We have the capabilities, vendor partnerships, supply chain strength, and talent to help customers and hyperscalers build and maintain these data centers. This has already been a major growth vertical for us and will continue to accelerate. Beyond that, we see significant opportunities in power generation to support these projects.
At the same time, Rexel remains laser-focused on balancing our core business with strategic growth. Initiatives like Talley and data centers are managed differently from our core operations to ensure we mitigate risk and never lose sight of our core customers, which is critical to our success.
tED magazine: Some analysts worry about a bubble risk in data centers. How do you assess that risk versus the long-term opportunity for the electrical distribution industry?
Jordan Lomheim: I don’t claim to have a crystal ball, and I’m wary of anyone who says they know exactly how this will unfold. We draw lessons from major industrial and tech shifts, telecom, fiber, dot-com, all of which offer valuable perspective. My view is that, like any transformative technology, AI will go through cycles, but we’re well positioned to navigate them. What’s certain is that AI is here to stay.
tED magazine: We hear a lot about the potential of AI in distribution. How is Rexel approaching AI, and where do you see it transforming the industry?
Jordan Lomheim: I believe AI will impact every function and role at Rexel USA. We see it as a horizontal enabler across the business, much like data. Making that vision real requires significant effort including change management, AI literacy, and constant evaluation of where AI can solve real business challenges.
Our core thesis is simple. Rexel USA holds about 6% market share in a highly fragmented industry. AI and technology gives us the ability to focus more on our customers. Every minute saved from administrative tasks is a minute we can spend building relationships, engaging with customers, and delivering solutions.
For us, this is not about cost cutting. It is about growth. AI allows us to amplify our sales force, quote faster than competitors, write more orders, and ultimately do more business. We have already proven this in practice.
Across the industry, AI will reshape every role, and the pace will be faster than most expect. I believe some aspects of this business will look dramatically different in five years, while others like the importance of relationships will remain unchanged. AI simply helps us serve those relationships better.
One point often overlooked is that electrical distribution has historically lagged in technology adoption because of lower margins and high fragmentation, making investments difficult. Margins have improved, creating room for reinvestment, but many players still lack the scale to make these investments which can be risky. It is not just about buying a tool. It is about building the right data stack, training teams, and managing change effectively.
What will truly surprise the industry is the speed of change. That is why strong change management, data investment, and focused deployment are critical. At Rexel, our size and scale allow us to pilot, experiment, and quickly identify what drives real value. We are in the early stages, but AI adoption across this industry is going to accelerate rapidly.
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